Homes and Property

How to survive redundancy

Over the next few months it is estimated that 300,000 people could lose their jobs, with London taking the biggest hit. Here are some tips on how to survive. By Ruth Bloomfield
Redundancy
© PA
If you are worried about redundancy, consider insuring your mortgage. Most lenders offer policies that will pay out for a set period if you lose your job

Insure your mortgage


If you are worried about redundancy, consider insuring your mortgage.

Most lenders offer policies that will pay out for a set period if you lose your job, but check the small print to make sure they pay out quickly and not just once you have been jobless for six or 12 months.

Some credit-card firms also allow you to insure your account, so if your income stops, your bill is gradually paid off.

Negotiate smaller monthly payments


If you are struggling with mortgage payments, talk to your lender and see if you can renegotiate a smaller monthly payment in the short term. For free and impartial advice on debt, try www.insolvencyhelpline.co.uk.

Seek legal advice


Seek legal advice and make sure you get everything you are entitled to from your employer - it should pay for your notice period plus a sum for each year worked at the firm. Some employers are open to negotiation and if you can’t get more cash you may be able to walk away with perks such as your company car. Pay-outs are tax-free up to £30,000.

Invest your pay-out


Put your pay-out in a high-interest savings account with instant access and talk to an independent financial adviser (IFA) about your financial options (www.ifa.org.uk).

Pay off debts


If you can afford to, pay off debts - particularly high-interest cards. Paying off some of your mortgage is also a good move, so long as you leave enough to live on until you are working again.

See a pension adviser


If you have a pension, arrange to see a pension adviser at your employer before you leave, to discuss how much you are owed. Then discuss your next move with an IFA. They will help you decide whether to leave it in that scheme or to transfer it.

Financial assistance


Once you are out of work you may be entitled to the Jobseeker’s Allowance, paid to men under 65 and women under 60 who are actively seeking employment. Citizens Advice (www.citizensadvice.org.uk) will be able to tell you whether you qualify.

Be creative


Be creative in your hunt for a new job. Recruitment consultant Eden Brown recommends updating your CV and networking with contacts and recruitment agencies to maximise opportunities.



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